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Tuesday, January 25, 2005

New World Telecom Joins Forces With Global Crossing

New WorldTelecommunications Ltd. (NWT) today announced that it has forged a strategicalliance with Global Crossing (Nasdaq: GLBC) that will deliver tomultinational enterprises seamless, secure, reliable multi-protocol labelswitching (MPLS) IP VPN and international private leased circuit (IPLC)services spanning more than 500 cities in 50 countries. By interconnectingtheir state-of-the-art networks, the two companies will deliver a unified,superior experience to their multinational customers worldwide. Through this strategic alliance, NWT will extend its global reach throughGlobal Crossing's MPLS-based IP network and its iMPLS(TM) service, an enhancedprovider-interconnect solution that allows NWT to offer its regional customersa global MPLS-based IP VPN service reach with guaranteed performanceservice-level agreements (SLAs). iMPLS enables the connection of GlobalCrossing's sophisticated, IP-based network with NWT's pioneering next-generation network, equipped with a unique "packet-over-fiber" platform thatsupports convergence of voice, data and video. "We are delighted to collaborate with Global Crossing, a leading telecomcarrier with a fully meshed MPLS IP network around the globe," said Peter Hung,vice president, marketing of NWT. "This collaboration represents anothermilestone in extending our reliable MPLS IP VPN and IPLC services worldwide.It also constitutes the cornerstone of our Managed Network(TM), encompassing awide range of converged IP service offerings. The alliance is also animportant part of our ongoing efforts to become a next-generation broadbandservice provider, offering enterprise customers a full array of integrated IPcommunications and applications, supported by our robust Cisco-based IPbackbone and Tier-1 IP peering partnership with major telecom powerhouses inHong Kong." "We regard Hong Kong as an important and strategic location for our marketexpansion in Asia. NWT shares our vision to deliver premium network servicesto multinational enterprises," said John Legere, Global Crossing's CEO. "NWT'sstrong IP infrastructure and service commitment make it an ideal Fast-Trackpartner for achieving this business goal." Fast-Track enables service providers to increase their speed-to-market andrevenue realization by expanding their geographic reach, broadening theirrange of converged IP service offerings and providing a unified experience totheir customers around the world. By using this strategic solution, serviceproviders avoid the costly expenditures and long lead times generallyassociated with service expansion. "National and global service providers are increasingly using strategicpartnerships to add value and extend the breadth of services they offer theirmultinational clients. NWT's alliance with Global Crossing illustrates theuse of such a partnership to address the growing demand in Asia-Pacific forinternational data and IP services," stated Rena Bhattacharyya, ProgramManager at IDC. "By working with Global Crossing, NWT plans to leverage itspartner's international assets, extending its geographic reach and broadeningits portfolio of services for multinational enterprises." In 2001, NWT became the first telecom service provider in Hong Kong tooffer MPLS IP VPN service to its enterprise customers with cross-borderoperations for the transmission of data, voice and video applications. Thanksto its proven track record in service delivery, NWT has already established aleading market position in the MPLS IP VPN market in Hong Kong. About New World Telecommunications Limited Established in 1995, New World Telecom (NWT) is a member of New WorldDevelopment Company Ltd. Backed by its advanced Next Generation Network, NWThas evolved from a traditional telecom carrier into a Next GenerationBroadband Service Provider offering a wide spectrum of unparalleled integratedcommunication solutions, applications and content services, such as broadband,IP telephony, VPN, IPLC, system integration, wireless solutions, local andinternational voice services, etc. NWT has continuously expanded its business coverage by investing in bothlocal and international network infrastructure, and establishing bilateralpartnerships with 100 global incumbents and major carriers. In addition, NWThas obtained appropriate facility-based licenses and has establishedPoint-of-Presence facilities and offices in strategically selected countriesand regions, including the US, Taiwan, the UK and Singapore. For details, please visit http://www.newworldtel.com. About Global Crossing Global Crossing (Nasdaq: GLBC) provides telecommunications solutions overthe world's first integrated global IP-based network. Its core networkconnects more than 300 cities and 30 countries worldwide, and deliversservices to more than 500 major cities, 50 countries and 6 continents aroundthe globe. The company's global sales and support model matches the networkfootprint and, like the network, delivers a consistent customer experienceworldwide. Global Crossing IP services are global in scale, linking the world'senterprises, governments and carriers with customers, employees and partnersworldwide in a secure environment that is ideally suited for IP-based businessapplications, allowing e-commerce to thrive. The company offers a full rangeof managed data and voice products including Global Crossing IP VPN Service,Global Crossing Managed Services and Global Crossing VoIP services, to morethan 40 percent of the Fortune 500, as well as 700 carriers, mobile operatorsand ISPs. Please visit http://www.globalcrossing.com for more information aboutGlobal Crossing. Statements made in this press release that state Global Crossing'sintentions, beliefs, expectations, or predictions for the future are forward-looking statements. These statements contain words such as "anticipate,""estimate," "expect," "project," "intend," "plan," "believe," "will," "seek,"or similar expressions. Such statements are subject to known and unknown risks,uncertainties and other factors that could cause the actual results to differmaterially from those contemplated by the statements, including theconditioning of the company's continued listing on the NASDAQ National Marketon its timely filing with the SEC of all periodic reports for all reportingperiods ending on or prior to September 30, 2005; the company's history ofsubstantial operating losses and the fact that, in the near term, funds fromoperations will not satisfy cash requirements; the ability of the company toarrange the necessary financing to fund its liquidity requirements includingthrough a working capital facility; legal and contractual restrictions on thepayment of dividends and the inter-company transfer of funds by the company'ssubsidiaries, including restrictions under the senior secured notes indentureapplicable to the company's primary operating subsidiary in the UK; thelikelihood that the prices the company charges for its services will continueto decrease; the company's ability to continue to connect its network toincumbent carriers' networks or maintain Internet peering arrangements onfavorable terms; the success of the company's business realignment plan andthe realization of anticipated cost savings; the consequences of anyinadvertent violation of the company's Network Security Agreement with the U.S.Government; the impact of actual and potential customers' bankruptcies on thecompany's sales prospects and results of operations; increased competition andpricing pressures resulting from technology advances and regulatory changes;competitive disadvantages relative to competitors with superior resources; theimpact on the company's competitiveness of its technology choices; thecompany's dependence on third parties for many functions; political, legal andother risks due to the company's substantial international operations; andother risks referenced from time to time in the company's filings with theSecurities and Exchange Commission. The company undertakes no duty to updateinformation contained in this press release or in other public disclosures atany time.

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